January sales offered deep discounts
BRC; Correction: Removed historical lows on first four bullets that were erroneously copied over from previous month’s press release. Apologies.
Period Covered: 01 – 07 January 2025
- Shop Price deflation was 0.7% in January, above deflation of 1.0% in the previous month. This is slightly above the 3-month average rate of -0.8%.
- Non-Food remained in deflation at -1.8% in January, edging up from -2.4% in the preceding month. This is slightly above the 3-month average rate of -2.0%.
- Food inflation eased to 1.6% in January, down from 1.8% in the month preceding. This is below the 3-month average rate of 1.8%. The annual rate has eased considerably since the start of 2024.
- Fresh Food inflation slowed in January, at 0.9%, down from 1.2% in December 2024. This is slightly below the 3-month average rate of 1.1%.
- Ambient Food inflation edged down to 2.5% in January, from 2.8% in November. This is below the 3-month average rate of 2.7% and remained at its lowest since February 2022.
| Overall SPI | Food | Non-Food | ||||
| % Change | On last year | On last month | On last year | On last month | On last year | On last month |
| Jan-25 | -0.7 | -0.4 | 1.6 | 0.5 | -1.8 | -0.9 |
| Dec-24 | -1.0 | 0.0 | 1.8 | 0.1 | -2.4 | -0.1 |
Note: Month-on-month % change refers to changes in the level of prices.
Helen Dickinson, chief executive of the BRC, said: “While overall prices fell in January, the pace of shop price deflation eased. Extensive January sales was good news for bargain hunters, with non-food products showing significant discounts, particularly for furniture and fashion, but less good news for retailers needing to shift excess stock. This month’s figures also showed early signs of what is to come, with month on month food prices rising at their fastest pace since April last year. Ambient food saw a 1% jump as prices spiked for sugary products, chocolates and alcohol.
“Price cuts and deflation may not last much longer as retailers will soon feel the full impact of £7bn of new costs announced at the last Budget. Higher employer NICs, increased National Living Wage, and a new packaging levy mean that prices are expected to rise across the board. Government can help to mitigate the impact on consumers by ensuring its proposed reforms to business rates do not result in any store paying more in rates than they already do. Without action, UK households will feel the effects.”
Mike Watkins, head of retailer and business insight, NielsenIQ, said: “Shoppers continue to be unsure about spending and many are seeing a continued squeeze on their household incomes. So we expect non-food retailers to still promote and food retailers to still offer price cuts over the next few weeks, with shoppers managing their budgets by shopping smart and shopping around for wherever the savings are the most attractive.”